Schouw & Co. — M&A Activity 2015

Nov 9, 2015

Schouw & Co. signed an agreement earlier today to acquire the hydraulics
company Specma AB from Investment AB Latour of Sweden. The transaction is worth
a total of SEK 820 million on a debt-free basis (enterprise value), equal to
about DKK 650 million. As is customary procedure in such transactions, the
agreement is subject to approval by the relevant authorities.

Schouw & Co. has been involved in the hydraulics industry since 1988 through
the trading and engi¬neering company Hydra-Grene, which has made solid
contributions to consolidated earnings throughout that period. Hydra-Grene and
Specma are a near perfect match both product-wise and geographically, and the
combined business is expected to achieve significant synergies. In acquiring
Specma, Schouw & Co. will almost treble the size of its hydraulics operations,
strengthen its overall market position in the Nordic region, and be much better
positioned to serve major clients in international markets.

Specma was founded in 1920 and has been a part of the Latour Group since 1985.
The com¬pany employs about 750 people, most of whom are based in Sweden but it
also has a significant presence in Finland, the UK, China and Poland as well as
small business units in the USA and Brazil. In 2015, Specma is expected to
generate revenue of more than SEK 1,350 million, EBITDA of approximately SEK
100 million and EBIT of approximately SEK 80 million.

The transaction is expected to close in connection with year-end, and the
acquisition of Specma will have no effect on Schouw & Co.’s consolidated
revenue and EBIT guidance for 2015.

For further information, see the press release issued today.

Aktieselskabet Schouw & Co.

Jørn Ankær Thomsen, Chairman
Jens Bjerg Sørensen, President, tel. +45 86 11 22 22.